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According to news reports the payment giant Mastercard (MA) has collaborated with cryptocurrency trading platform Paxos to provide a program that would assist financial firms in offering cryptocurrency trading.
Mastercard to Handle Regulatory Compliance & Security
The report states that Mastercard would be in charge of security and regulatory requirements for banks. Earlier, the payments company had launched a technology that enables issuers to evaluate the risk profile of cryptocurrency exchanges. Additionally, some customers have expressed skepticism. The world's leading digital assets have seen their price decline by more than 50% this year, and cryptocurrencies such as bitcoin are renowned for their volatility. In addition to several high-profile bankruptcies, the sector has experienced billion-dollar cyberattacks since January. According to Jorn Lambert, a chief digital officer at Mastercard, several people are genuinely interested in this and intrigued by crypto but would feel a lot safer if those services were supplied by their financial institutions. He further stated that there is still demand for the asset, but almost 60% of respondents said they would prefer to explore the market through their current institutions.
Large Banks Have Dedicated Crypto Teams
Large financial banks like Goldman Sachs, Morgan Stanley, and JPMorgan have specialized cryptocurrency departments but have mainly refrained from providing it to customers. According to the payments organization, its responsibility is to keep banks in compliance with regulations by adhering to crypto compliance guidelines, confirming transactions, and offering anti-money laundering and identity monitoring services. In the first quarter of 2023, Mastercard will trial the product before cranking the handle to operate globally. Lambert refuses to reveal which institutions have thus far joined up.
Collaborations of Mastercard
Visa and Mastercard have both engaged in a crypto partnership binge. For NFTs and Bakkt, Mastercard has recently partnered with Coinbase, enabling banks and retailers in its network to provide services linked to cryptocurrencies. The last week saw Visa's collaboration with FTX to provide cryptocurrency debit cards in 40 different nations. Visa already has more than 70 crypto collaborations.